on the basis of the financial information harish has obtained, calculate the cost of making MTR 2000 inhouse in 2021? please share calculations b. please compa
make vs buy
haris aggarwal A
direct materails 19,50,000
direct manufaturing labour 12,00,000
plants space rental 8,40,000
equipment leasing 3,60,000
other manufaturing overhead 22,50,000
toatl manufaturing cots 66,00,000
harish has also collected the following information related to manufaturing MTR2000:
a. price of direcct materials used in the production of MTR 2000 are expected to increase by 8% in 2021
b. car udyog direct manufaturing labour contract calls for a 5% increase in 2021
c. car udyog can withdraw from the plant space rental agreement without any penalty. car udoyg will have no need for this space if MTR 2000 is not manufatured
d. the equipment lease can be terminated by paying rs. 60,000/-
e. 40% of the other manufaturing overhead is considerd variables. variavble overhead changes propotionaately with the number of units produced. the fixed componenet of other manufatureing overheads is expected to remain the same whether or not MTR2000 is manufatured required.
a. on the basis of the financial information harish has obtained, calculate the cost of making MTR 2000 inhouse in 2021? please share calculations
b. please compare with the cost of outsourcing the product and whether it is profitable to buy or manufature MT 2000?
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